Introduction To Governmental And Not-for-profit Accounting

Introduction to Governmental and Not-for-Profit Accounting This page intentionally left blank Seventh Edition Introduction to Governmental and Not-for-Profit Accounting Martin Ives New York University (retired) Terry K. Patton Midwestern State University Suesan R. Patton UHY LLP Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Donna Battista Editorial Project Manager: Christina Rumbaugh Editorial Assistants: Jane Avery and Lauren Zanedis Director of Marketing: Maggie Moylan Leen Marketing Assistants: Kimberly Lovato Director of Production: Nancy Fenton Production Project Manager: Clara Bartunek Creative Art Director: Jayne Conte Cover Designer: Bruce Kenselaar Cover Art: Fotolia Full-Service Project Management: Munesh Kumar/Aptara®, Inc. Printer/Binder: Courier Companies/Westford Cover Printer: Lehigh/Phoenix—Hagerstown Text Font: Minion Pro Regular Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Copyright © 2013, 2009, 2004 by Pearson Education, Inc., publishing as Prentice Hall. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Ives, Martin. Introduction to governmental and not-for-profit accounting / Martin Ives, Terry Patton, Suesan Patton.—7th ed. p. cm. Rev. ed. of: Introduction to governmental and not-for-profit accounting / Martin Ives . . . [et al.]. 6th ed. ISBN-13: 978-0-13-277601-1 ISBN-10: 0-13-277601-4 1. Fund accounting. 2. Finance, Public—Accounting. 3. Nonprofit organizations—Accounting. I. Patton, Terry K. II. Patton, Suesan R. III. Introduction to governmental and not-for-profit accounting. IV. Title. HF5681.F84R39 2013 6579.835—dc23 2012020546 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-277601-4 ISBN 13: 978-0-13-277601-1 BRIEF CONTENTS Chapter 1 Governmental and Not-for-Profit Accounting Environment and Characteristics 1 Chapter 2 The Use of Funds in Governmental Accounting Chapter 3 Budgetary Considerations in Governmental Accounting 58 Chapter 4 The Governmental Fund Accounting Cycle: An Introduction to General and Special Revenue Funds 100 Chapter 5 The Governmental Fund Accounting Cycle: General and Special Revenue Funds (Continued) 127 Chapter 6 The Governmental Fund Accounting Cycle: Capital Projects Funds, Debt Service Funds, and Permanent Funds 182 Chapter 7 The Governmental Fund Accounting Cycle: ProprietaryType Funds 228 Chapter 8 The Governmental Fund Accounting Cycle: Fiduciary Fu